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MIS in walmart

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MIS in walmart

  1. 1. MIS inGROUP-5• Sreedhar G.• Mayank Tripathi• Poonam Khaitan• Shivam Mehrotra• Shaurya Vikram SinghPowerpoint Templates Page 1
  2. 2. Management Information System• System that provides information needed to manage organizations effectively and efficiently. Powerpoint Templates Page 2
  3. 3. Objectives of MIS • To improve the Management decision making • By providing accurate and up-to-date information about the key aspects of organizational performance. Powerpoint Templates Page 3
  4. 4. Applications • ERP(Enterprise Resource Planning) • SCM(Supply Chain Management) • CRM(Customer Relationship Management) • KMS(Knowledge Management System) Powerpoint Templates Page 4
  5. 5. History of Walmart • Sam Walton, a businessman from Arkansas, began his retail career when he started work on June 3, 1940. • On July 2, 1962, Walton opened the first Walmart Discount City store located at 719 Walnut Ave. in Rogers Arkansas. • Has undergone several changes in its image(specifically logos) Powerpoint Templates Page 5
  6. 6. Powerpoint Templates Page 6
  7. 7. • This phenomenal growth of Walmart is attributed to its continued focus on customer needs and reducing cost through efficient supply chain management practices Powerpoint Templates Page 7
  8. 8. Hub and Spoke System• In the early 1970s, Walmart became one of the first retailing companies in the world to centralize its distribution system, pioneering the retail hub-and- spoke system• Goods were centrally ordered, assembled at a massive warehouse, known as „distribution center‟ (hub), then dispatched to the individual stores (spoke). Powerpoint Templates Page 8
  9. 9. • The hub and spoke system enabled Walmart to achieve significant cost advantages by the centralized purchasing of goods in huge quantities; and• distributing them through its own logistics infrastructure to the retail stores spread across the U.S. Powerpoint Templates Page 9
  10. 10. Walmart‟s Procurement• The need to reduce purchasing costs and offer the best price to the customer.• The company directly procured from manufacturers, by passing all intermediaries.• Walmart finalizes a purchase deal only when it is fully confident that the products being bought is not available else where at a lower price. Powerpoint Templates Page 10
  11. 11. • Walmart spends a significant amount of time meeting vendors and understanding their cost structure.• By making the process transparent, the retailer can be certain that the manufacturers are doing their best to cut down costs. Powerpoint Templates Page 11
  12. 12. Using EDI for Procurement• The computer systems of Walmart were connected to those of its suppliers.• EDI enabled the suppliers to download purchase orders along with store-to-store sales information relating to their products sold.• On receiving information about the sales of various products, the suppliers shipped the required goods to Walmart‟s distribution centers. Powerpoint Templates Page 12
  13. 13. Inventory Management• Walmart invested heavily in IT and communication systems to effectively track sales and merchandise inventories in stores across the country.• With the rapid expansion, it was essential to have a good communication system.• Hence, Walmart set up its own satellite communication system in 1983. Powerpoint Templates Page 13
  14. 14. • Walmart was able to reduce unproductive inventory by allowing stores to manage their own stocks, reducing pack sizes across many product categories, and timely price markdowns.• Instead of cutting the inventory across the board, Walmart made full use of its IT capabilities to make more inventories available in the case of items that customers wanted most, while reducing the overall inventory levels. Powerpoint Templates Page 14
  15. 15. • Employees at the stores had the “Magic Wand,” a hand-held computer which was linked to in-store terminals through a radio frequency network.• These helped them to keep track of the inventory in stores, deliveries, and backup merchandise in stock at the distribution centers. Powerpoint Templates Page 15
  16. 16. • Order management and store replenishment of goods were entirely executed with the help of computers through the Point-of-Sales (POS) system.• Through this system, it was possible to monitor and track the sales and merchandise stock levels on the store shelves. Powerpoint Templates Page 16
  17. 17. Voice-based Order Filling (VOF)• In 1998, Walmart installed a voice-based order filling (VOF) system in all its grocery distribution centers.• Each person responsible for order picking was provided with a microphone/speaker headset, connected to the portable (VOF) system that could be worn on waist belt.• They were guided by the voice to item locations in the distribution centers. Powerpoint Templates Page 17
  18. 18. • The VOF system also verified quantities picked, and could respond to a variety of requests such as providing product detail (type, price, barcode number, etc.)• By installing the VOF system, Walmart eliminated mispicks and product labeling costs since the system did not require paper lists and labels to be affixed on the goods. Powerpoint Templates Page 18
  19. 19. Quick Replenishment• Since the floor area of any Walmart store varied between 40,000 to 200,000 square feet, movement of goods within the store was an important part of logistics operations.• Walmart made significant investments in IT to quickly locate and replenish goods at the stores. Powerpoint Templates Page 19
  20. 20. Pretty Darn Quick displays• The company asked its suppliers to ship goods in store-ready displays called pretty darn quick (PDQ) displays.• Goods were packed in PDQ displays that arrived at the stores ready to be boarded on the racks.• Walmart‟s employees could directly replace the empty racks at the stores with fully packed racks, instead of refilling each and every item at the racks. Powerpoint Templates Page 20
  21. 21. Retail link system• In 1991, Walmart had invested approximately $4 billion to build a retail link system.• More than 10,000 Walmart retail suppliers used the retail link system to monitor the sales of their goods at stores and replenish inventories.• Details of daily transactions (~10 million per day) were processed through this system. Powerpoint Templates Page 21
  22. 22. • Retail Link connected Walmart‟s EDI network with an extranet, accessible to Wal-Mart‟s thousands of suppliers.• The suppliers could find out how their product was performing against competitors products in a particular product category. Powerpoint Templates Page 22
  23. 23. • Walmart owned the largest and most sophisticated computer system in the private sector.• The company used Massively Parallel Processor (MPP) computer system to track the movement of goods and stock levels.• All information related to sales and inventories was passed on through an advanced satellite communication system. Powerpoint Templates Page 23
  24. 24. CollaborativePlanning, Forecasting andReplenishment(CPFR)• By the mid 1990s, Retail Link had emerged into an Internet-enabled SCM system whose functions were not confined to inventory management alone• It also covered collaborative planning, forecasting and replenishment (CPFR). Powerpoint Templates Page 24
  25. 25. • In CPFR, Walmart worked together with its key suppliers on a real-time basis by using the Internet to jointly determine product-wise demand forecast.• CPFR is defined as a business practice for business partners to share forecasts and results data through the Internet, in order to reduce inventory costs while at the same time, enhancing product availability across the supply chain. Powerpoint Templates Page 25
  26. 26. CPFR: Hard to implement• Though CPFR was a promising supply chain initiative aimed at a mutually beneficial collaboration between Walmart and its suppliers , its actual implementation required huge investments in time and money• A few suppliers with whom Walmart tried to implement CPFR complained that a significant amount of time had to be spent on developing forecasts and analyzing sales data Powerpoint Templates Page 26
  27. 27. VAN EDI vs Web-EDI• In October 2002, Walmart asked its 14,000 suppliers to switch over from the existing Value Added Networks (VAN) EDI to web enabled EDI• VANs route and manage EDI messages for their customers• By implementing web-EDI, Walmart can save millions of dollars in the form of license fees to the private VANs Powerpoint Templates Page 27
  28. 28. VAN EDI WEB EDITransactions between the business Transactions between the businesspartners are routed and managed partners are routed through thethrough Private Value Added internet.Networks.It takes time for the messages to be Direct online communication betweencommunicated between the trading the trading partners.partners.Transactions are not totally secure as Security of transactions is relativelythey are routed through private high as the transactions are routedplayers. through a secured web server with a 128 bit end-end security.Charge transaction fees from those As internet is accessible to all ,nowho utilize the service. Transaction transaction fee is charged.costs are high. Powerpoint Templates Page 28
  29. 29. RFID Technology(Radio Frequency Identification)• In efforts to implement new technologies to reduce costs and increase the efficiency, in July 2003, Walmart asked its top 100 suppliers to be RFID compliant by January, 2005.• Walmart planned to replace bar-code technology with RFID technology.• They believed that this replacement would reduce its supply chain management costs and enhance efficiency. Powerpoint Templates Page 29
  30. 30. • Because of the implementation of RFID, employees were no longer required to physically scan the bar codes of goods entering the stores and distribution centers, saving labor cost and time.• Walmart expected that RFID would reduce the instances of stock-outs at the stores. Powerpoint Templates Page 30
  31. 31. Powerpoint Templates Page 31
  32. 32. CONCLUSION• Walmart has been able to efficiently USE and UPGRADE its IT tools , namely: • EDI • VOF • CPFR • RFID• Achieved EFFICIENCY and COST MINIMIZATION Powerpoint Templates Page 32
  33. 33. Thank YouPowerpoint Templates Page 33

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